Malaysia: 2008 Pharmaceutical Outlook - What Lies Ahead?

KUALA LUMPUR, Malaysia--(Business Wire)--
Malaysia is likely to be a leader in the global pharmaceutical
industry, says Frost & Sullivan.

The Frost & Sullivan's 2008 Malaysian Pharmaceutical Outlook will
be held over an exclusive web briefing on 28 February 2008. Ms. Lin
Hui Tham, Consultant of Healthcare Asia Pacific at Frost & Sullivan,
will share her predictions for the year ahead across the
pharmaceutical markets in Malaysia. This briefing will include a
detailed analysis of individual pharmaceutical segments, Malaysian
pharmaceutical sector, drivers and challenges in 2008 and an overall
industry outlook of the Malaysian and the Asia Pacific region.

Malaysia is expected to see a definite rise in the pharmaceutical
industry in 2008. This is through increasing numbers of pharmaceutical
manufacturers that have sought to outsource or in-license their
operations. From then moving onto big pharmaceutical companies that
have began to outsource clinical work to contract research
organizations (CROs) and also locate the clinical trials in the most
cost-competitive sites. This can only be done if there are sufficient
medical research capabilities available. Its future market trends are
shifting towards generics consumption as well as biotech and
specialist driven therapy. Hence, the opportunity for healthcare
companies venturing into Malaysia looks bright. This in return enables
the country to expand its global footprint in the Asia Pacific
healthcare industry.

Malaysia's healthcare growth spending rate was 5th in ranking,
behind Philippines, India, South Korea, and China. Malaysia is
considered small in population size in comparison to the other 4
countries. But the healthcare spending of Malaysians are incredibly
high, reflecting the trend of Malaysians towards a healthy lifestyle.
Hence this opens big opportunities for pharmaceutical companies to
gear up their manufacturing in order to meet the increasing demands of
healthcare products.

"Malaysia's pharmaceutical industry has become increasingly
reputable. Therefore the key drivers that are building the reputation
globally are medical tourism, the generic market, specialist driven
therapy market, dietary supplement market and herbal or traditional
medicines" said Lin Hui.

"Frost & Sullivan estimates that by 2013, the industry will be
valued at about US$1800 million, growing at a CAGR of 10.5% boosted by
changing demographics and rising healthcare expectations. Malaysia's
increase in export value has made the country a member of the
Pharmaceutical Inspection Co-operation Scheme (PICS). The
Pharmaceutical industry in Malaysia is mainly dominated by the MNCs,"
she added.

Lin Hui added that Malaysia has actively been exporting to its
neighbouring countries to gain growth revenue. The total export in
2004 amounted to US$131 million. These were just mainly for locally
manufactured pharmaceutical products. The export from Malaysia for the
vitamin market currently covers more than 30 countries including
Africa and Central America. Also, major export destinations are
Singapore Vietnam, Brunei, Hong Kong, Taiwan, Japan and Germany.

The Malaysian government has played a big role in providing
initiatives to the pharmaceutical industry. Grants and financing
schemes has been provided to support R&D initiatives, pharmaceutical
inspection co-operation scheme (PICS), the industrial master plan 3
(IMP3, 2006-2020) and the Malaysia's Intellectual Property Laws.
Various types of incentives have also been given and put into good
use.

She added that at present, there are various market opportunities
in the pharmaceutical industry for one to look at. The Biotechnology
industry is expanding at an exciting rate. The Bio-Generic industry
which is relatively unexplored is estimated to grow at an annual
average of more than US$16 billion by 2011. Malaysia is targeted to
lead (one of a few countries) the herbal market, thus numerous
incentives such as research grants are being offered to local
companies in this market. Lastly, the vitamin sector has scored great
progress in the last few years. The vitamin and dietary supplements
market for Malaysia reached US$ 131 million in 2006. Hence, further
enhanced growth is to be seen in 2008.

Those interested in participating in the webinar should send an
email to Shereen Gill - Corporate Communications at
shereen.gill@frost.com with the following information: title of
analyst briefing, full name, media/company name, title, telephone
number, e-mail address and country. The registration details will be
emailed to you upon receipt of the above information.

About Frost & Sullivan

Frost & Sullivan, the Global Growth Consulting Company, partners
with clients to accelerate their growth. The company's Growth
Partnership Services, Growth Consulting and Career Best Practices
empower clients to create a growth focused culture that generates,
evaluates and implements effective growth strategies. Frost & Sullivan
employs over 45 years of experience in partnering with Global 1000
companies, emerging businesses and the investment community from more
than 30 offices on six continents. For more information about Frost &
Sullivan's Growth Partnerships, visit www.frost.com.

Frost & Sullivan
Corporate Communications - Healthcare, Asia Pacific
Shereen Gill, DID: +603 6204 5909
Mobile: +6017 617 8300
shereen.gill@frost.com

Copyright Business Wire 2008